Probably the situation in South Asian Studies (Indology) is peculiar.
As I indicated, there are mostly no  budgets for book typesetting in 
Indology and
I know of no real expert for typesetting in this field. In other 
words, the authors
have do it themselves, usually in Word etc., but some do use TeX etc. 
Our publications
series (Indologica Marpurgensia) is, for instance, all done with 
LaTeX, as are my publications
with Harrassowitz, which is the largest publisher in our field in 
Germany. There is no institution
offering typesetting of Sanskrit editions, because there is no 
commercial interest in it and I
think there is no expertise for this (especially when Indian scripts 
are used instead of transliteration).

Journals are different. Indological journals published by Brill use 
TeX internally, which is convenient,
but most others know only Word (->InDesign). That is the situation, 
frustrating in a way, but it also
gives some freedom for using TeX (and, sadly, creating one's own 
dilettantic designs).

Jürgen